Offerpad Receives Notice Regarding NYSE Continued Listing Standards

Rhea-AI Summary

Offerpad Solutions (NYSE: OPAD) has received notice from the New York Stock Exchange (NYSE) on April 10, 2025, indicating non-compliance with Section 802.01B of the NYSE Listed Company Manual. The company failed to maintain both an average global market capitalization over a 30-day trading period and stockholders' equity above the required $50 million threshold.

The company plans to submit a business plan within 45 days to demonstrate how it will regain compliance within an 18-month cure period. The NYSE will review the plan and determine its acceptance within 45 days of receipt. During this period, OPAD's Class A common stock will continue trading on the NYSE, subject to compliance with other listing standards and periodic review.

Positive

• 18-month period granted to cure listing deficiencies
• Trading continues on NYSE during compliance period

Negative

• Company's market capitalization and stockholders' equity both fell below $50 million
• Risk of potential NYSE delisting if compliance plan is not accepted or executed successfully
• Indicates significant deterioration in company's market value and equity position

Insights

Financial Analyst

NYSE non-compliance notice signals serious financial distress at Offerpad; delisting risk looms if recovery plan fails.

Offerpad's NYSE non-compliance notification represents a significant red flag for investors. The company has violated Section 802.01B by falling below the $50 million threshold in both average market capitalization and stockholders' equity simultaneously, indicating fundamental financial weakness beyond mere stock price volatility.

The notification initiates a structured remediation process with critical deadlines. Offerpad must submit a compliance plan within 45 days, which the NYSE will evaluate within another 45 days. If accepted, the company gains an 18-month cure period to rectify these deficiencies while remaining listed.

However, this situation creates substantial uncertainty. Companies receiving dual-criteria violations typically face challenging recovery paths that often involve dilutive equity raises, asset sales, or significant operational restructuring. With Offerpad's current $39.7 million market capitalization, the gap to compliance is material.

Investors should monitor several potential outcomes:

• Acceptance of compliance plan with continued listing during remedy period
• Rejection of plan with potential accelerated delisting proceedings
• Potential transfer to OTC markets if delisting occurs
• Significant share dilution if equity issuance becomes necessary

Historical precedent shows mixed results for companies in similar situations. While some successfully regain compliance through strategic transactions or operational improvements, many ultimately face delisting or execute highly dilutive financing events that permanently impair shareholder value.

The dual-criteria violation suggests Offerpad faces structural challenges, not merely temporary market conditions. The absence of specific remediation details in their announcement amplifies investor uncertainty during this critical period.

TEMPE, Ariz.--(BUSINESS WIRE)-- Offerpad Solutions Inc. (“Offerpad” or the “Company”) (NYSE: OPAD), reports that, on April 10, 2025, it received written notice (the “NYSE Notification”) from the New York Stock Exchange (“NYSE”) that the Company is not in compliance with Section 802.01B of the NYSE Listed Company Manual because its average global market capitalization over a consecutive 30 trading-day period and, at the same time, its last reported stockholders’ equity were each less than $50 million.

The Company plans to notify the NYSE that it intends to submit a plan to cure the deficiency and to return to compliance with the NYSE continued listing standards. As required by NYSE, within 45 days of the Company’s receipt of the NYSE Notification, the Company plans to submit a business plan advising the NYSE of the definitive action(s) the Company is taking or plans to take that would bring it into compliance with NYSE continued listing standards within 18 months of receipt of the NYSE Notification (the “Cure Period”). Pursuant to applicable NYSE rules, the NYSE will review the plan and, within 45 days of its receipt, determine whether the Company has made a reasonable demonstration of an ability to conform to the relevant standards in the Cure Period.

The NYSE Notification has no immediate impact on the listing of the Company’s Class A common stock. If the NYSE accepts the plan, the Company’s Class A common stock will continue to be listed and traded on the NYSE during the Cure Period, subject to the Company’s compliance with the other continued listing standards of the NYSE and continued periodic review by the NYSE of the Company’s progress with respect to its plan. If the plan is not submitted on a timely basis or is not accepted by the NYSE, the NYSE could initiate delisting proceedings.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Report that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements relating to the Company’s plan to notify the NYSE of its intent to cure the continued listing requirement deficiencies and any potential plans to cure the deficiencies and the Company’s ability to return to and maintain compliance with the NYSE continued listing standards. These forward-looking statements are based on management's current expectations. Actual results could differ from those projected in any forward-looking statements due to several risk factors. Such factors include, among others, risks and uncertainties related to the Company’s ability to regain compliance with the NYSE’s continued listing standards within the applicable cure period; the Company’s ability to continue to comply with the applicable NYSE continued listing standards; the Company’s ability to respond to general economic conditions; the health of the U.S. residential real estate industry; the Company’s ability to grow market share in its existing markets or any new markets it may enter; the Company’s ability to grow effectively; the Company’s ability to accurately value and manage real estate inventory, and to maintain an adequate and desirable supply of real estate inventory; the Company’s ability to successfully launch new product and service offerings, and to manage, develop and refine its technology platform; the Company’s ability to maintain and enhance its products and brand, and to attract customers; and the Company’s ability to achieve and maintain profitability in the future; and the success of strategic relationships with third parties. These and other important factors discussed under the caption "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and its other filings with the U.S. Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements. Any forward-looking statements represent management's estimates as of the date of this Report and the Company undertakes no duty to update these forward-looking statements, whether as a result of new information, the occurrence of current events, or otherwise, unless required by law.

About Offerpad

Offerpad, dedicated to simplifying the process of buying and selling homes, is a publicly traded company committed to providing comprehensive solutions that remove the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to B2B renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we've leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step. Learn more at www.offerpad.com.

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Investors

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Media

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Source: Offerpad

FAQ

What are the consequences of Offerpad (OPAD) not meeting NYSE listing requirements in 2025?

If Offerpad fails to submit an acceptable plan within 45 days or doesn't meet NYSE requirements during the 18-month cure period, the NYSE could initiate delisting proceedings for the stock.

How long does Offerpad (OPAD) have to regain compliance with NYSE standards in 2025?

Offerpad has an 18-month cure period to regain compliance after submitting their business plan, which must be done within 45 days of receiving the notice on April 10, 2025.

What NYSE requirements did Offerpad (OPAD) fail to meet in April 2025?

Offerpad failed to maintain both an average global market capitalization over a 30-day trading period and stockholders' equity above $50 million, violating NYSE Section 802.01B requirements.

Will Offerpad (OPAD) stock continue trading on NYSE after the April 2025 notice?

Yes, OPAD stock will continue trading on NYSE during the cure period, provided the company submits an acceptable plan and maintains compliance with other listing standards.